Internationally, the prices of various raw materials have peaked due to the recent Ukraine-Russia crisis. Because of this inflation has emerged as the worst problem. Meanwhile, the asset price ratio is expected to increase by 7.5% due to the rise in prices of various capital goods. This is the fastest growth in the last 5 years. According to a Reuters forecast, house prices are expected to rise by 6% next year.
Property prices may increase
In a study conducted by 13 property analysts on november 11-27, it was predicted that the asset price ratio would increase by 5% in the current year.
The price ratio of companies in the BSE-Index has increased by 21% in the last one year. The Sensex has gained 15% during the same period.
How much will the price increase?
According to a Reuters study, house prices in mumbai and delhi and its environs are expected to rise by 4-5%. Prices are expected to increase by 5.5 - 6.5% in Bangalore and Chennai.
Demand will increase
As the price of capital goods needed to build houses has risen, so has the demand for housing. Interest rates have also started to rise during this period. So this can have a further impact. However, as demand increases, it may not have a large impact.
Rent may increase
However a good pay rise could further encourage demand in the market. Meanwhile rents may also increase, among many other factors, such as rising costs and rising interest rates. This is expected to have a major impact among the common people.
